Euro zone economy grew 0.2 percent in summer – recession looming

Port of Rotterdam

In spring there was even stronger growth in the euro zone.

(Photo: dpa)

Berlin, Brussels, The economy in the euro zone has summer because of record inflation and the consequences of the Ukraine war lost momentum. Despite the headwind, gross domestic product (GDP) rose by 0.2 percent from July to September compared to the previous quarter, as the statistics office Eurostat announced on Tuesday, thereby confirming an initial estimate from the end of October.

In spring there was still 0.8 percent growth. The US economy, on the other hand, shrank in the first two quarters of 2022 but then grew by 0.6 percent in the summer.

Economic development in the individual countries of the euro zone continues to vary. While the major economies have grown slightly, the economy in Latvia has shrunk significantly. The Baltic states are suffering from the consequences of once close economic ties with Russia, which have become strained in the wake of the war in Ukraine and Western sanctions.

The EU Commission assumes that the economy in the euro area and in Germany slides into recession over the winter. Next year, GDP in the currency area is only likely to increase by 0.3 percent and in Germany it will even fall by 0.6 percent in 2023, the Brussels authorities said last week in their new economic forecast.

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